The world is bustling, all for profit; the world is bustling, all for profit! Hello everyone, I am your friend Lao Cui, focusing on digital currency market analysis, striving to convey the most valuable currency market information to countless coin friends. Welcome the attention and likes from all coin friends, and reject any market smoke bombs!

I have explained many approaches to spot trading, including the operational trends of the coin circle. As a result, users who come to consult Lao Cui are basically contract users. Today, we will discuss contracts and also talk about how to engage in contract trading under the current operational status. In terms of profit models for contracts, there are basically only two situations: one is profit from box range fluctuations, and the other is profit in spot trading mode. There are also two representatives for these approaches. Among them, the classic representatives in the coin circle are Yili Hua and MicroStrategy, and it seems that Yili Hua’s operational mode is centered on spot trading. However, this is not the case, as it is actually done through borrowing methods. The leverage scale behind it is similar to the contract logic. The peak profit for both can exceed tens of billions or even hundreds of billions, but the appearance of liquidation prices is the effect of leverage. For example, Yili Hua's profit margin above 4000 for Ethereum is enormous, while the liquidation price is around 1900, taking into account the leverage of over 2 times.

The reference value of Yili Hua is not substantial; the operational situation of the giants is vastly different for us ordinary speculators. Lao Cui's operational habit tends to favor box range fluctuation phases, afterward liquidating after a breakout. In Lao Cui's private desires, it is mostly day trading, and there are few overnight exits; although Lao Cui also has the possibility of trend trades, the typical contract trend often only arises when there is a significant error in spot trading, prompting salvage operations. For example, entering spot trading at the 200 position for SOL, buying the dip all the way to around 100, averaging out at between 120-130. When it fell below 150, Lao Cui clearly realized that instability factors had arisen in this trend. But ultimately, the contract intervention was mainly on ETH, and he didn’t easily enter SOL. Why choose Ethereum? This is also because Ethereum is more stable, and Lao Cui does not dare to easily acquire SOL with high leverage; instead, he lets the results speak for themselves as SOL's spot trading has already incurred significant value deviation errors, where the downturn depth of small coins is unpredictable.

Lao Cui's investment philosophy is always to maximize profits and minimize losses. As for spot trading losses, for us, as long as we haven’t exited, it’s just a short-term judgment error. At the same time, Lao Cui firmly believes that this year has the potential for new highs, so for Lao Cui's operations, it’s a process to recover short-term losses. Since the end of November last year, Lao Cui has already encouraged users holding spot trades to try shorting contracts, of course, some users still choose to hold spot. Lao Cui’s role can only explain trends; I have also made it clear to this portion of users that 2026 will see new highs. As long as everyone can accept short-term losses in the first half of the year, then the contract is negligible. A simple accounting method could be, for example, Lao Cui's SOL average price around 130, entering through contracts, for Lao Cui, the current loss is just from 130 to the current price around 80, an overall loss of nearly 50 points.

The role of contracts will manifest itself, this loss of 50 points, Lao Cui is still locking in at this stage, so as long as a rebound occurs later, it will unlock contract profits. For Lao Cui’s spot holdings, it can directly enter a compound interest mode. This does not mean that stubbornly holding onto spot is the wrong choice; instead, Lao Cui admires this type of individuals who clearly know they will incur losses yet choose to believe. As long as spot users can firmly hold onto their positions, they will have opportunities to profit when Bitcoin is around 120,000, during the 2026-2025 period. Spot users need not worry about their entry points; just ensure that when you are in profit, you must persuade yourself to exit. This is where contracts and spots differ – the entry points for contracts must be ensured, and the entry and exit points cannot deviate too much; the appearance of liquidation prices will surely have psychological interference effects, so when trends arise, Lao Cui often does not recommend everyone to intervene in contracts.

Throughout the entire contract experience, during the 2024-2025 period, Lao Cui has not recommended everyone to engage in leverage-based long trades. When it’s clear that a bull market is coming, using contracts to amplify profits is too risky. In the current market condition, Lao Cui believes that this is the most suitable form for contract involvement. With identified new low points, for contract users, there is operational space whether bullish or bearish, the closer it gets to new low points, the more suitable for entering long positions. Near short-term new highs, the more suitable for shorting. The operational spaces for long and short are also very clear; the short-term new high pressure for Ethereum at 2000, and the short-term new low operating range of 1800-1900. But please remember one thing, last year's approach was to chase the rise, which is what Lao Cui referred to as chasing the breakout, entering to short after breaking certain resistance levels. This method only fits trend trading, meaning during a clear bull market, so Lao Cui let everyone chase.

This year's different circumstances have set the stage for fluctuations between the range boxes, further testing experience. Whether long or short, both will wait for stable operations in the next level after breaking out. Simple understanding; there is no clear trend at this stage, and in the short term within 1-2 months, there will only be interval fluctuations, and this interval will not exhibit bullish formations or unidirectional downward trends. Whether it’s growth or decline, it will exhibit a wave up or down with interval forms existing for about a week. If treated from a long-term perspective, the oscillation range of this box will be greater. As for profit targets, they will be smaller. Lao Cui's set plan, if engaging in contract operations, can only seek profits of 1000 points for Bitcoin and 30-50 points for Ethereum, just one order per day. The current market trend cannot be regarded from a mid-to-long-term view; profits can be taken upon exit.

Lao Cui’s summary: Everyone engaging in contracts must be careful not to play with small coins; the only coin options are Ethereum and Bitcoin; DOGE or SOL should not be entered lightly, unless there is a clear trend. From certain technical indicators: the current price is below the EMA24 and EMA52 moving averages, and EMA24 is crossing below EMA52, indicating that the medium to long-term trend is weak. Meanwhile, the chip distribution shows that 1848 USDT is a strong support level, but recent candlesticks have formed a hanging man pattern near the support level, suggesting a bearish reversal risk. Before a clear large bullish candle appears, although the overall trend is an interval shape, it definitely leans towards weakness; even if there is a short-term upward demand, breakthroughs will not occur. Under this pattern, shorting will certainly yield higher returns than going long; everyone's real-time operations must catch the interval, which heavily tests experience; the risks of contracts remain high, and if you do not suffer losses on the spot, it’s best not to engage in contracts. If there is a need, you can directly ask Lao Cui! Also, I declare: Lao Cui does not recommend platforms, nor promotes markets; if you need platforms, go look for others!

Original creation by WeChat Official Account: Lao Cui Says Coins. For help, you can contact directly.

Lao Cui's message: Investing is like playing chess; experts can see five moves, seven moves, or even more than ten moves ahead, while those with lesser skills can only see two or three steps ahead. Superior players observe the overall situation and strategize big trends, not fixating on individual pieces or positions, aiming for the ultimate win. In contrast, lesser players jump at every inch of ground, frequently switching positions, only vying for momentary short-term gains, ultimately finding themselves frequently stuck.

This material is for learning reference only and does not constitute trading advice; any trading based on it is at your own risk!

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